The banks sued include Bank of America (BAC), Citigroup (C), JPMorgan Chase (JPM) and others that set the London Interbank Offered Rate, or Libor, which is the basis for trillions of dollars in contracts, including mortgages and bonds.

Fannie claims it lost $800 million from transactions that were based on the banks' false submissions of their borrowing costs used to calculate Libor. The banks deliberately held down the value of Libor to benefit their trading positions and boost profits, Fannie said.

In a statement, Fannie said it brought the suit to recover its losses. "We have a responsibility to be good stewards of our resources," the company said.

Four of the banks -- Britain's Barclays and Royal Bank of Scotland (RBS), Switzerland's largest bank UBS (UBS) and the Dutch Rabobank -- have been fined a total $3.6 billion by U.S. and British regulators for manipulating Libor.

Spokesmen for Bank of America, Citigroup and JPMorgan declined to comment on Fannie's lawsuit.

The other two banks sued are Germany's Deutsche Bank (DB) and Switzerland's Credit Suisse (CS).

The lawsuit says the three U.S. banks, as well as Deutsche Bank and Credit Suisse, remain under investigation in connection with alleged manipulation of Libor.

The inspector general for the Federal Housing Finance Agency reported last year that Fannie and Freddie together may have lost more than $3 billion on their transactions from the banks' rate-rigging. FHFA oversees Fannie and Freddie, both of which were rescued during the 2008 financial crisis and are now government controlled.

The legal action by Fannie and Freddie added to a flurry of lawsuits filed by cities and municipal agencies in the U.S. against some of the banks that set Libor. The cities and agencies are seeking damages for losses they say they suffered as a result of an artificially low rate, because they hold bonds and other investments whose value is pegged to Libor.

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pdbliz

BIG MORNING NEWS.!!!!!!

ABC,,,,CBS.and others,,,,not calling OBAMA A LIER,,,but,,,states HE,,,OBAMA MISLEAD THE PEOPLE ON THE HEALTHCARE ACT.... Now,,,Democrates that own this problem from now on,,,see .....IT WAS A SCAM FROM THE GET GO.!!!!! When the government takes over your healthcare and IRS takes control of the people... SOCIALISUM IS FORMED...........ALL PEOPLE UNDER GOVERMENT CONTROL..... WELCOME TO THE WORLD OF OBAMA, AND THE DEMOCRATES.!!!!!

Not to worry, the Banks, Feds, Wall Street, Commodities Markets, Insurance, Energy and Health Care ALL have back up scams to keep their hands in your wallets AT WILL. All with an wink of the eye of CONGRESS.

My other concern with regard to the Libor rates being tampered with is, did this also have a financial effect on the APR rate of interest individuals were paying on credit cards? As APR interest rates are calculated by the Libor scale.

All this fraud knowingly committed by individuals in the banking business. Yet not one person is sent to jail or prison. These hefty fines will not stop the corrupt business practices of these bankers involved. If the individuals are found guilty the Government should seize their personal assets and toss their a**'s in prison. Once this type of punishment is put in place as opposed to just fines, perhaps then we would see a little less corruption within the banking business.